Motor vehicles added a whopping 1.66% of the 3.5% growth in Q3 GDP. More specifically, motor vehicle output was up... wait for it... 157.6% on an annualized basis.
Source: BEA
Thursday, October 29, 2009
Thank You Cash for Clunkers
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Taking all three of the last posts together as a set - excellent. A suggestion?
ReplyDeleteStimulus spending was the answer but take a look at Inventories. Did rather well. Be interesting to see what I:S ratio does and did too. Bet it's still going down.
The obvious question is what happens when it fades of course.
To summarize:
ReplyDelete1) We have stimulus
2) We have inventory restocking
3) Do we have REAL private demand (i.e. non-subsidized)?
Unfortunately, I don't think we'll find out til Q1 '10
No argument whatsoever. Within that context the question then becomes how big was the inventory re-build? Which might be approachable via our earlier discussion on looking at the historical Inventory:Sales ratio.
ReplyDeleteExactly. However, consider the cost of the program as published by edmunds.com and it is even worst. For my take on today's numbers click on my name.
ReplyDeleteClusterstock ripped you off:
ReplyDeleteCHART OF THE DAY: Cash-For-Clunkers MASSIVELY Distorted GDP
http://www.businessinsider.com/chart-of-the-day-motor-vehicle-output-2009-10
Thanks for the heads up Barry...
ReplyDelete